Tyson Foods Inc (TSN)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,436,000 | 448,000 | -243,000 | -603,000 | -395,000 | 834,000 | 2,217,000 | 3,422,000 | 4,410,000 | 5,553,000 | 5,582,000 | 5,146,000 | 4,396,000 | 3,449,000 | 3,160,000 | 2,955,000 | 3,008,000 | 2,654,000 | 2,672,000 | 2,749,000 |
| Interest expense (ttm) | US$ in thousands | 351,000 | 444,000 | 398,000 | 376,000 | 355,000 | 345,000 | 341,000 | 349,000 | 365,000 | 385,000 | 405,000 | 418,000 | 428,000 | 449,000 | 466,000 | 475,000 | 485,000 | 484,000 | 483,000 | 483,000 |
| Interest coverage | 4.09 | 1.01 | -0.61 | -1.60 | -1.11 | 2.42 | 6.50 | 9.81 | 12.08 | 14.42 | 13.78 | 12.31 | 10.27 | 7.68 | 6.78 | 6.22 | 6.20 | 5.48 | 5.53 | 5.69 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,436,000K ÷ $351,000K
= 4.09
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Looking at Tyson Foods Inc's interest coverage ratio over the past few quarters, there seems to be some fluctuation. In the most recent quarter, Sep 30, 2024, the interest coverage ratio stands at 4.09, indicating that the company generated more than enough operating income to cover its interest expenses. This marks a significant improvement from the previous quarter, Jun 30, 2024, where the ratio was only 1.01, suggesting a tighter ability to cover interest payments.
However, analyzing the trend over the last few quarters, Tyson Foods Inc had some periods where the interest coverage ratio was below 1, such as Mar 31, 2024, Dec 31, 2023, and Sep 30, 2023. This implies that the company's operating income was insufficient to cover its interest obligations during these quarters, which could raise concerns about its financial stability and ability to service its debt.
Overall, while the recent improvement in the interest coverage ratio is positive, investors and creditors may still want to monitor Tyson Foods Inc's ability to consistently cover its interest expenses to ensure the company's financial health and debt servicing capacity.
Peer comparison
Sep 30, 2024